Oil Companies Moot Daily Fuel Pricing

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If things go according to plan, public sector oil companies may change fuel prices daily in line with international practices.

The Economic Times reports that executives of state-owned oil firms met Oil Minister Dharmendra Pradhan and key ministry officials on April 05 to discuss the idea of daily fuel pricing.

Currently, oil prices are reviewed and changed every fortnight. The long interval in price changes means that the price changes are often sharp. If the proposal of daily fuel pricing is accepted, oil companies will be able to change the prices only marginally, thus not affecting the end customer too drastically.

Commenting on the proposal, one of the executives said, “Daily price revision is about introducing international standards in the Indian fuel retail market. It helps both customers as well as dealers in managing their purchase.”

The oil executives feel that the time for daily fuel pricing has arrived, as the technology to change prices at most filling stations exists, and price changes can easily be conveyed through digital technologies and social networks.

Adopting the international norms in fuel pricing can also benefit private oil companies like Essar and Reliance, that are held back by the state-ordained pricing.